Might be related or not, but what ISP connection are you on? My work internet connection doesn't allow SMTP connections, so I can receive but can't send for example. Some ISPs don't allow outbound SMTP connections to any server other than their own (probably as a spam measure) too.

Agreed, some don't allow outbound on 25 - but gmail uses different ports that can not be used for standard sending of email. 465 and 587 it would be odd for isp to block those ports. But telnet test would verify this.

I sorted it out. There is a option in outlook to repair the account. I did that and boom it started to work Upon checking the SSL and TLS port. To my suprise the smtp port worked at 25 TLS not the usual ones for gmail.